Fidelity bank banner UBA banner
China’s 8-year-long smartphone growth comes to an end

By Mary-Ann Russon on 26/01/2018

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 937


China’s smartphone market has fallen for the first time, with annual shipments down by 4% in 2017, according to data from research firm Canalys.

The decline ends eight years’ growth in the world’s largest mobile phone market.

Smartphone brands Huawei, Oppo and Vivo continue to dominate the Chinese handset market.

Despite the overall slowdown of the market, Huawei saw double-digit growth, the Canalys report said.

Changing times

Between 2010 to 2015, the global smartphone market was mostly a showdown between Apple and Samsung.

But over the last two years, smaller Chinese Android smartphone brands have risen, offering faster entry-level phones at much more affordable prices.

While consumers in big Chinese cities like Beijing and Shanghai see the latest iPhone and Galaxy devices as “must-have” handsets, people in rural areas couldn’t afford the hefty price tags and mostly stuck to basic feature phones.

o offer these consumers a premium experience at a lower price, Oppo and Vivo – both owned by reclusive billionaire Duan Yong Ping – chose to eschew online and instead open retail stores on high streets in rural provinces.

The approach of offering an Apple-esque in-store customer experience was successful. In 2016, China saw a huge boom in consumers swapping their basic phones for premium smartphones.

According to Counterpoint Research, by August 2017 Huawei had sold almost as many smartphones as Apple. By the end of 2016, it had already dethroned Samsung from the top spot as most profitable Android device brand in the world.

Market saturation

So why the decline? According to Mo Jia, research analyst at Canalys, now that consumers have traded up from basic phones to entry-level smartphones, they feel they don't need another one.

People are saying that “the phones they have now are already good enough,” Mr Jia told the BBC. “We say that it’s gone from a ‘change’ market to a ‘stop’ market.”

Since even entry-level smartphones have an abundance of features, the life cycles of these devices are much longer than before, now up to 26.8 months, according to Canalys.

The research firm does not see the Chinese smartphone market growing until 5G devices hit the scene in late 2019.

And while the perceived “luxury” prestige of iPhones will prompt some consumers to want to trade up, Mr Jia points out that the latest smartphones from Chinese brands are almost equivalent in specs and hardware to Apple’s handsets.

“The phone makers are making much better phones. For example, if you look at the Huawei Mate 10 and the Mate 10 Pro, their specs are comparable to iPhone 8 and iPhone 8 Plus. But the Mate 10 is at least 30% cheaper than the iPhone 8,” he said.

Samsung’s marketing disaster early last year over battery faults with the Galaxy Note 7 severely damaged its brand reputation in China.

So, when people wanted a new Android device, they were much more likely to look to Huawei, Oppo and Vivo, Mr Jia added.

Expanding abroad

With the Chinese market looking pretty saturated for now, overseas expansion will be critical for Huawei, Oppo and Vivo in 2018.

“Oppo and Vivo are trying to expand into more countries like Russia and Japan, and they’re trying to deepen their market in South East Asia,” said Mr Jia.

“Xiaomi is doing very well in India. They are the most popular brand there and are seeking to open more stores. They are also expanding into Thailand.”

Meanwhile, Huawei’s focus is on “budget smartphones” – cheaper entry-level or mid-level devices.

The Chinese tech giant has not had much success lately in the US, as talks to release the Mate 10 Pro on AT&T collapsed due to government security concerns.

But Huawei is looking to continue growing in developing markets in South East Asia and Africa, while retaining and growing its existing popularity in Europe. (BBC)

*PLS USE ATTACHED PHOTO

Source News Express

Posted 26/01/2018 6:42:47 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

 

You may also like...
Gov Umahi urges new LG chiefs to develop...

Kenya bus crash kills at least 40

Robots will dominate workplaces by 2025: World Economic...

Gov. El-Rufai promises over 3,000 jobs in Kaduna...

What are we restructuring?

Nigerian woman booted out of US airline for...

LG Poll: 31 political parties to boycott election...

Army Transport School lauds Obaseki, to train Edo...

Don’t rule out rains today in Yenagoa, Port...

‘Fight against cancer is for everyone’

2019: Governors, Ministers set up committee on Buhari’s...

World Cup: Belgium beat England to finish third...

 

Latest News 2019: Security Council foresees violence in Nigeria Atiku will return PDP to power — Babatope Gunmen kill APC treasurer in Ekiti Peter Obi's vice presidential nomination receives standing ovation in USA Senate panel uncovers massive fraud in NAHCON operations Osun PDP supporters protest alleged disbandment of Election Petition Tribunal Policeman, two others killed in Benue gunfight Detention by EFCC: We're taking steps to enforce Fayose’s fundamental rights — Ozekhome Bayelsa lecturer beats world’s 500 most influential experts to win science championship Reps to NYSC: Lift ban on Benue graduates Tambuwal appoints 25 commissioners Hours after students’ protest, OSCATECH staff suspend strike

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (407,438 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (382,781 views) Shameless Genevieve Nnaji exposes breasts in public (315,130 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (257,656 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (237,718 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (224,531 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (204,310 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (185,777 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (170,450 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (166,022 views) Lagos plane crash: Journalist releases victims’ names (161,657 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (149,424 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (67) Business & Economy (3,691) Business Verdict (52) Columnists (948) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (559) Features (660) Global Business Monitor (304) International (2,543) Interview (165) Live Commentary (28) Love Matters (145) News (39,725) Opinion (1,124) Pidgin (13) Politics (7,287) Religion (881) Sports (1,733) Stock Watch (35) AMA & Al Jazeera Global Update

 

NLNG Prize for Literature 2018

Zenith Zero Balance

CBN banner

Firstmobile banner

 

 

 

NEWS EXPRESS TV

LIBYA vs NIGERIA 2-3 Goals Highlights

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement